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    Bioenergya carbon accounting

    time bomb

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    Background:a carbon accounting time bomb3

    4

    7

    10 Conclusionsand solutions

    AndyHay(rspb-images.com)

    Carbon debt of woody biomass

    Carbon launderingbiofuels and indirect land use change

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    The European Union (EU) established a 20% target for renewable energy use by 2020 and a 10%target for renewables in the transport sector by 2020. Bioenergy, including solid biomass and waste,

    is expected to represent 60% of the EUs renewable energy use and biofuels is expected to cover

    most of the 10% renewable energy use in transport. Widely perceived as carbon neutral, new studies

    reveal that these policies could be increasing emissions compared to fossil fuels.

    Two studies commissioned by BirdLife International, EEB, and T&E show that Europe has a major

    carbon accounting problem, threatening the credibility of two flagship EU environmental policies:

    the Renewable Energy Directive (RED) and the Emissions Trading Scheme. Under EU accounting rules,

    burning bioenergy is considered to be carbon neutral despite the release of significant greenhouse

    gas (GHG) emissions in the short-medium term, turning bioenergy into a misguided policy toolfor achieving emissions reductions. The best available scientific evidence shows that the carbon

    costs of many bioenergy options are high. Bioenergy causes losses of carbon to the atmosphere

    from vegetation and soils when biomass is harvested. And biofuels cause losses of carbon to the

    atmosphere when land is converted - either directly or indirectly - to meet the increased demand for

    agricultural crops.

    Two principle gaps exist in the current accounting scheme for GHG emissions from bioenergy and

    biofuels, one temporal and one spatial in nature:

    Carbon debt.Harvesting forest biomass and associated management changes and conversion

    of land, releases immediate and significant GHG emissions - creating a carbon debt - that can take

    decades or even centuries to repay through recapture in soils and vegetation. The time element is

    ignored under EU law, which means that carbon reductions on paper in 2020 do not correspond

    to what is happening in reality.

    Carbon laundering.For the purpose of reporting under the UNFCCC, emissions from burning

    biomass are allocated to the land use, land use change and forestry (LULUCF) sector, not the

    energy sector. Those emissions, however, are not always accounted for in countries reduction

    obligations since countries can opt not to include emissions from forest management. In

    addition, the accounting system under the Kyoto Protocol counts only those emissions occurring

    in Annex 1 countries1, allowing emissions from a decrease in forest stocks in non Annex-I

    countries to be excluded. This means that when non-Annex 1 countries export biomass to Annex

    1 countries, not only are the emissions from harvesting not accounted for, but neither are the

    emissions that occur when the biomass is burned. This accounting gap is only partially solved

    by the RED sustainability criteria which only calculate the emissions related to direct land use

    change. Indirect land use change (ILUC) is still being ignored.

    While both studies presented here concentrate on carbon, it must be noted that other environmental

    impacts, such as loss of biodiversity and ecosystem services, are also significant and must be

    considered in policy decisions on bioenergy and biofuels.

    Background:a carbon accounting time bomb

    B i o en er g y a c a r b o n a c c o u n t i n g t i m e b o m b 3

    1. Annex 1 countries are those that have an emission reduction obligation under the Kyoto Protocol (i.e. the industrializedcountries) .

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    This study suggests that while

    recovering waste biomass can

    have short term emission reduction

    benefits, increasing the harvesting

    of standing forests will mostly lead

    to worsening of the climate crisis-

    and that is before even starting

    to look at other impacts such

    as biodiversity loss or increased

    erosion.

    Carbon debtof woody biomass

    The carbon debt created

    when woody biomass is

    burned takes centuries

    to pay off. The result isthat biomass can be more

    harmful to the climate than

    the fossil fuel it replaces.

    B i o en er g y a c a r b o n a c c o u n t i n g t i m e b o m b4

    This section is based on the following report:

    Bird N., Pena N. & Zanchi J., The upfront carbon

    debt of bioenergy, Graz, Joanneum Research,

    June 2010. An electronic version of the report

    can be found at: http://www.birdlife.org/eu/

    EU_policy/Biofuels/carbon_bomb.html

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    The European Commission - DG Energy - estimates

    that bioenergy demand in 2020 will require 195 Mtoe2

    of biomass. Energy generation from solid biomass and

    biowaste will be 58% of the total renewable energy

    generation in 2020 (140 Mtoe of 240 Mtoe), covering

    12% of the gross energy demand. Although quantifying

    emissions is scientifically possible, no full assessment was

    performed to determine the GHG implications of the EU-

    RED policy. This study focuses on filling a critical gap in

    these assessments.

    In this study, emissions are quantified through a so-calledCarbon Neutrality (CN) factor. The factor is defined as the

    ratio between the net reduction or increase of carbon

    emissions in the bioenergy system and the carbon

    emissions from the substituted fossil fuel system - the

    fossil fuel comparator - over a period of time. Because

    initial emissions from bioenergy and biofuels can be

    higher than those from fossil fuels due to lower efficiency

    and land-based carbon stocks changes, bioenergy only

    starts to deliver atmospheric benefits after the passage of

    time. The turning point occurs when recovery of carbonstocks equals the cumulative fossil fuel emissions avoided

    by use of biomass. The study looks at the carbon stock

    emissions, addressing an area that has been largely

    ignored in previous studies. It does not examine other

    sources of emissions, such as transport and processing,

    because those impacts have been analysed and

    quantified elsewhere.

    The study revealed that biomass for bioenergy can have

    variable climate mitigation potentials, depending on the

    timeframe considered and the source of the biomass. This

    can be calculated by assessing the development of the

    carbon neutrality factor (CNC) over time:

    Additional logging for bioenergy can produce a

    decrease of the overall carbon stock in managed

    forests, which will significantly affect the GHG balance

    of the bioenergy system. In the short-medium term

    (20-50 years), additional felling3 could emit more

    B i o en er g y a c a r b o n a c c o u n t i n g t i m e b o m b 5

    2. Million tons of oil equivalent3. Calculation based on additional harvesting taking place in a rotation forest in Austria of 60 ha. In a 60 year rotation period, 1 ha of

    forest is cut each year.

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    carbon than a fossil-fuel system (CN

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    The scientific evidence is growing

    that most current biofuels have very

    poor greenhouse gas performance

    and the majority are actually worse

    for the climate than the fossil fuels

    they replace.

    Carbonlaunderingbiofuels and indirectland use change

    Growing biofuels on

    agricultural land results in

    the conversion of forests

    and other natural areas intocropland to replace those

    agricultural lands lost to

    biofuels production. This

    results in related emissions

    that can completely negate

    any climate benefits.

    This section is based on the following report:

    Bergsma G. C., Croezen H. J., Otten M. B. J. &

    van Valkengoed M.P.J., Biofuels: indirect land use

    change and climate impact, Delft, CE Delft, June

    2010. An electronic version of the report can be

    found at: http://www.birdlife.org/eu/EU_policy/

    Biofuels/carbon_bomb.html

    B i o en er g y a c a r b o n a c c o u n t i n g t i m e b o m b

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    The conventional thinking is that biofuels have a carbon

    benefit, displacing fossil fuels and associated emissions.Biofuels and fossil fuels used in vehicles have, however,

    comparable tailpipe emissions. Any carbon savings

    therefore come from the assumption that biofuels

    feedstocks are carbon neutral: emitting the same

    amount of carbon as was sequestered during cultivation.

    This assumption overlooks the fact that carbon would

    have been absorbed by vegetation on the land. This

    is exacerbated by the conversion of forests and other

    natural areas into agricultural land, leading to a reduction

    in its carbon stock from forest to cornfield, for example.Forests and natural areas also absorb and accumulate

    carbon over time, which annual or perennial cropping

    does not. Therefore, to assess GHG implications from

    transitioning from fossil fuels to biofuels, it is essential

    to account for land use and land conversion. Land

    use changes can be both direct when a forest itself

    is converted to cropland for biofuels feedstocks, and

    indirect when current agricultural land is used for biofuels

    production, which means that existing crop production

    moves into natural areas. See Figure 2.

    Figure 2: Schematic representation of indirect land usechange mechanism. Agricultural land currently used forfood production is taken for biofuels feedstock and food

    production is displaced into newly cleared land. Whennatural habitats such as forests and grasslands are convertedto agriculture, their carbon stock is lost. These emissions canoften be greater than those caused by burning fossil fuel.Thus producing the same amount of energy as the biofuelstriggering the displacement.

    8

    Baseline scenario Scenario with increased

    biofuels use

    Nature

    Agri for food Agri for food

    Displacedproduction

    Biofuels

    Nature

    B i o en er g y a c a r b o n a c c o u n t i n g t i m e b o m b

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    Indirect land-use change (ILUC) has been the subject of a significant number of studies. Some of these

    studies have estimated emissions on the basis of agro-economic models, whilst others have taken a riskbased approach, which serve as a worst-case scenario. A review by CE Delft shows that, under a risk-based

    approach, the estimated 70 million tonnes of CO2reductions under EUs biofuel policy are dwarfed by the

    270 million tonnes of CO2emissions from land-use change. Even under more conservative agro-economic

    models, ILUC would result in 70 million tonnes of CO2emissions, resulting in no net carbon benefit.

    Figure 3 The graph shows the results of different ILUC models and how their results for emissions from biofuelscompare to the thresholds set by the Renewable Energy Directive. The graph demonstrates that, when indirectland use change effects have been added to the default GHG savings of biofuels, only sugar cane ethanol and

    waste biofuels still meet the 35% and 50% thresholds for GHG reductions from biofuels use that apply under theRenewable Energy Directive (RED). Other biofuels result either in no GHG savings or even in net emissions increasecompared to petrol and diesel.

    According to the study, ILUC effects can be partially mitigated by ensuring additional carbon growth, such

    as increasing yields or increasing productivity of abandoned or degraded lands in a sustainable way without

    damaging biodiversity. It can also be avoided by using waste products as biofuels where no land is required

    to produce it and it does not conflict with more efficient uses, such as a soil improver. Strong policies are

    needed, however, in order to guide the right decisions of the companies.

    9

    0%

    50%

    -50%

    100%

    -100%

    HFOpalm

    wasteoilbiodiesel

    palmo

    ilbiodiesel

    sunflowerbiodiesel

    soybeanbiodiesel

    rapeseedbiodiesel

    2ndgenethanol,residues

    sugarcaneethanol

    maizeethanol

    wheatethanol

    sugarbeetethanol

    FTdiesel,residues

    AGLINK (ILUC model)

    IIASA (ILUC model)

    IFPRI BAU (ILUC model) default reduction RED *LCFS II (ILUC model)

    RFS II (ILUC model)

    IFPRI FT (ILUC model) RED 2017 minimum saving requirement

    current RED minimum saving requirement

    * default values set for the GHG reductions from biofuels that does not include ILUC.

    B i o en er g y a c a r b o n a c c o u n t i n g t i m e b o m b

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    The financial crisis has taught us that

    basing policy on rigged accounting is

    not a good idea; this is as true for carbon

    accounting as for financial accounting.

    10

    Conclusionsand solutions

    Bioenergy and biofuels can

    still contribute to climate

    change mitigation, but only

    if we use technologies andfeedstocks that truly deliver

    timely savings. Honest

    accounting is the critical

    first step.

    B i o en er g y a c a r b o n a c c o u n t i n g t i m e b o m b

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    These two studies have revealed that unless a number of urgent measures are taken, the EUs renewable

    energy policy, an EU flagship policy to combat climate change, is very likely to lead to an increase in carbon

    emissions. For it to remain a flagship of EU climate policy, a growth in renewable capacities will need to

    be coupled with strong policies to increase energy efficiency and reduce demand. The development of

    renewable energy capacities will need to take full account of the physical limits the environment poses.

    At present, the European Commission is preparing an assessment of the ILUC effect of biofuels policy and a

    proposal for tackling the problem. Without proper accounting of ILUC emissions, the use of biofuels is likely

    to undermine the EUs efforts to tackle climate change.

    In the short term, according to the study, the only viable policy measure to ensure emission savings is

    the application of an ILUC factor. Such an ILUC factor would correct the overestimated climate benefits for

    biofuels, taking into account all land-use-based emissions, including those caused by displacement. The

    actual values are already calculable for most common feedstocks, and others may rely upon a default factor

    of 60 g CO2/MJ until actual values can be determined. The default value can be reduced or removed when

    evidence is provided that the feedstock does not use land - waste and residues - or results from increased

    crop yields.

    The situation regarding biomass for energy is more problematic because the European Commission has

    recently decided against developing legally binding sustainability criteria before 2011 at the very earliest. It is

    vital that the European Commission reverses this decision and puts in place robust mandatory sustainability

    standards including minimum thresholds for greenhouse gas savings.

    Given the urgent need to reduce GHG emissions in the short-term i.e. the next 10 to 40 years, only biomass

    that delivers positive GHG gains compared to fossil fuels over a 20-year period should be allowed to

    qualify for meeting the 20% renewables target. In practical terms, this means limiting bioenergy to certain

    feedstocks, such as certain waste streams where this does not compete with other uses, new plantations

    on abandoned land with little biodiversity value, or carefully managed systems in which proven increased

    growth is stimulated by forest management.

    Getting the carbon accounting right is absolutely crucial. However, it is far from the full story. Bio-

    energy production can have very severe impacts on biodiversity, water and other natural resources

    and on vulnerable human populations. Comprehensive, watertight, legally binding and well

    implemented sustainability standards are absolutely vital in order to ensure that bio-energy can

    truly live up to its promise of being green energy.

    11B i o en er g y a c a r b o n a c c o u n t i n g t i m e b o m b

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    European Environmental Bureau EEB

    The EEB is a federation of more than 140 environmental citizens organisations based in all EU Member States and most

    Accession Countries, as well as in a few neighbouring countries. These organisations range from local and national, to European

    and international. The aim of the EEB is to protect and improve the environment of Europe and to enable the citizens of Europe

    to play their part in achieving that goal.

    E- mail: [email protected] - http://www.eeb.org/

    BirdLife International

    BirdLife International is a global Partnership of conservation organizations that strives to conserve birds, their habitats and

    global biodiversity, working with people towards sustainability in the use of natural resources. The BirdLife Partnership operates

    in more than 100 countries and territories wor ldwide. BirdLife International is represented in 42 countries in Europe and is active

    in all EU Member States.

    E-mail: [email protected] - http://europe.birdlife.org

    Transport Environment T&E

    T&E is an independent pan-European association with scientific and educational aims, with no party political affiliation and

    devoid of any profit making motive. T&Es mission is to promote a policy of transport and accessibility, based on the principles

    of sustainable development, which minimises negative impacts on the environment and health, use of energy and land and all

    economic and social costs, maximises safety, and guarantees sufficient access for all. Established in 1990, T&E represents around 50

    organisations across Europe, mostly environmental groups and sustainable transpor t campaigners.

    E-mail: [email protected] - http://www.transportenvironment.org

    BirdLifeInternational

    Published:June2010

    LicenceDK/11/1

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    onE

    UE

    colabelcertified

    paper-

    Copyinga

    nd

    graphicpaper

    This publication is part-financed by the European Union

    The contents of this publication are the sole responsibility

    of BirdLife International and can under no circumstances be

    This report has been

    produced with the

    financial support of the

    designby:w

    ww.studiostraid.be

    Studies used as basis for this repor t:

    Bird N., Pena N. & Zanchi J., The upfront carbon debt of bioenergy, Graz, Joanneum Research, June 2010 can be found at: http://www.birdlife.org/eu/

    EU_policy/Biofuels/carbon_bomb.html

    Bergsma G. C., Croezen H. J., Otten M. B. J. & van Valkengoed M.P.J., Biofuels: indirect land use change and climate impact, Delft, CE Delft, June 2010 can be

    found at: http://www.birdlife.org/eu/EU_policy/Biofuels/carbon_bomb.html

    Credits pictures:

    Front cover: Burung Indonesia - Eka TresnawanPage 2: a. Anonymous

    Page 2: b. Innofor.fi

    Page 2: c. Steve Wilson

    Page 4: Anonymous

    Page 5: a. Anonymous

    Page 5: b. Stig Bjrk

    Page 7: Burung Indonesia - Eka Tresnawan

    Page 8: a. Greenpeace - Vinai Dithajohn

    Page 8: b. Greenpeace - Dmitri Sharomov

    P 10 T R bij